River Valley Green recently unveiled two sites for tender submission.
URA issued a press release dated March 11 to announce two residential plots at River Valley Green are now up for sale under its 1H2024 Government Land Sales (GLS) programme. They are located near Great World MRT Station on Thomson-East Coast Line as well as Great World City shopping mall.
Parcel A, covering an approximate area of 99,972 square feet, is now up for sale on the Confirmed List and could yield up to 380 apartments. Adjacent Parcel B occupies approximately 126,290 square feet and may be added under Reserve List consideration – River Valley Green could produce 580 units including 220 serviced long-stay apartments.
River Valley would make an attractive development site for single professionals and couples with two incomes but no children, due to its close proximity to both Clarke Quay & Robertson Quay which offer ample dining and entertainment choices.
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Great World City is within walking distance for future residents and renters may find its proximity to CBD appealing. River Valley Primary school is only 1km away so homebuyers with children might also find this project appealing.
City Developments Limited constructed Irwell Hill Residences on Irwell Bank Road. City won the site with a bid of $583.89 Million which equaled an average plot ratio price per square foot of around $1,515 per foot; sales began for Irwell Hill Residences on April 1, 2021 with an average psf price tag of about $2700 per unit.
Irwell Hill Residences and The Avenir, two new launches in this area, have both sold out, so we may see high demand for units at future developments due to limited supply of homes in this region.
GLS plots can also be found nearby; last December, the government unveiled two GLS plots at Zion Road as part of their 2H2023 GLS program in December 2018. Zion Road parcel A was released under the Confirmed List with its tender closing on April 4, while parcel B is open for applications under its Reserve List; expected yield of this parcel includes 435 serviced apartments and 1,170 units.
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Developers looking into developing serviced apartments may find River Valley Green (Parcel B) to be more manageable as it’s only half as large as Zion Road. He believes its integration with Great World MRT Station will offer seamless connectivity for future residents.
River Valley (Parcel-A) site is expected to receive three or four bids, with the top one between $483 million and $525 million; this equates to land rates from $1.380 per square foot per year to $1,500 annually; according to Lee Sze Teck of Huttons Asia this could translate to between a land rate of between $1,600 per square foot per year and bids between $525 to $560 million respectively.
Lee anticipates no more than three bidders will vie for the site and that lower bids will be offered, thus lessening developer risk. Bidding may also be more conservative given stamp duty increases since April 2018 have “posed a barrier” to new home sales.
River Valley Green parcel A will close on June 19th.
